Align Technology: not going down on bad numbers

Align is a dental consumer products company that has been struggling in the post Covid world.

• 2022 downgrades were part of the pandemic dislocation & management’s over-optimism.

• We believe, ALGN’s business model and competitive position have not been impaired.

• We see the potential for earnings growth to rebound to 30% over 2022-25 driven by a recovery in revenue growth and operating margins.

• The multiple is below historical average and low relative to peers, hence why we see 78% upside potential over a couple of years.

Potential Upside: $514 (+78%)

Sensible Downside: $230(-20%)

Link to Research